Empowered Funds LLC Raises Position in Zoom Communications, Inc. $ZM

Key Points

• Empowered Funds more than doubled its Zoom position in the first quarter, acquiring 162,902 additional shares to hold 305,821 shares valued at approximately $24.6 million. Institutional investors own 66.54% of Zoom.
• Zoom exceeded quarterly expectations, reporting $1.55 in adjusted earnings per share and $1.24 billion in revenue, while revenue increased 5.5% year over year. The company guided for fiscal 2027 earnings of $5.96–$6.00 per share.
• Analyst sentiment remains moderately positive, with a consensus “Moderate Buy” rating and a $109.33 price target versus the stock’s $91.48 opening price. Insiders, including the CFO and CEO, sold shares through pre-arranged plans, with insiders selling 48,517 shares worth about $5.1 million over 90 days.

Empowered Funds LLC boosted its holdings in Zoom Communications, Inc. (NASDAQ:ZM - Free Report) by 114.0% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 305,821 shares of the company's stock after purchasing an additional 162,902 shares during the period. Empowered Funds LLC owned approximately 0.10% of Zoom Communications worth $24,585,000 at the end of the most recent reporting period.

Several other hedge funds have also added to or reduced their stakes in the business. Advocate Investing Services LLC purchased a new position in shares of Zoom Communications in the fourth quarter worth about $26,000. Strive Financial Group LLC bought a new stake in shares of Zoom Communications in the 4th quarter valued at about $27,000. Toth Financial Advisory Corp purchased a new stake in Zoom Communications during the 4th quarter valued at about $28,000. Rexford Capital Inc. boosted its holdings in Zoom Communications by 45.7% during the 1st quarter. Rexford Capital Inc. now owns 389 shares of the company's stock valued at $31,000 after acquiring an additional 122 shares during the period. Finally, Sound Income Strategies LLC grew its position in Zoom Communications by 94.8% during the 4th quarter. Sound Income Strategies LLC now owns 411 shares of the company's stock worth $33,000 after acquiring an additional 200 shares during the last quarter. 66.54% of the stock is owned by institutional investors.

Insider Transactions at Zoom Communications

In related news, CFO Michelle Chang sold 8,489 shares of the business's stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $90.80, for a total transaction of $770,801.20. Following the transaction, the chief financial officer owned 35,452 shares in the company, valued at $3,219,041.60. The trade was a 19.32% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Eric S. Yuan sold 12,100 shares of the stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $111.61, for a total transaction of $1,350,481.00. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 48,517 shares of company stock valued at $5,061,783. Company insiders own 8.83% of the company's stock.

Zoom Communications Stock Up 0.3%

Shares of Zoom Communications stock opened at $91.48 on Wednesday. The business has a 50 day moving average of $93.03 and a 200 day moving average of $89.08. Zoom Communications, Inc. has a 52 week low of $69.15 and a 52 week high of $114.74. The company has a market cap of $26.82 billion, a PE ratio of 13.43, a P/E/G ratio of 4.89 and a beta of 1.01.

Zoom Communications (NASDAQ:ZM - Get Free Report) last released its quarterly earnings results on Thursday, May 21st. The company reported $1.55 earnings per share for the quarter, beating the consensus estimate of $1.42 by $0.13. The business had revenue of $1.24 billion for the quarter, compared to analysts' expectations of $1.22 billion. Zoom Communications had a net margin of 41.99% and a return on equity of 11.87%. The firm's revenue for the quarter was up 5.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.43 earnings per share. Zoom Communications has set its FY 2027 guidance at 5.960-6.000 EPS and its Q2 2027 guidance at 1.450-1.470 EPS. On average, research analysts anticipate that Zoom Communications, Inc. will post 4.21 earnings per share for the current year.

Analyst Ratings Changes

Several brokerages have weighed in on ZM. Cantor Fitzgerald boosted their price objective on Zoom Communications from $87.00 to $104.00 and gave the company a "neutral" rating in a research report on Friday, May 22nd. Needham & Company LLC reissued a "buy" rating and set a $130.00 price objective on shares of Zoom Communications in a research note on Thursday, July 2nd. Citizens Jmp reaffirmed a "market perform" rating on shares of Zoom Communications in a research note on Wednesday, May 20th. Citigroup lifted their target price on shares of Zoom Communications from $122.00 to $126.00 and gave the stock a "buy" rating in a research note on Tuesday, May 26th. Finally, KeyCorp upgraded shares of Zoom Communications from an "underweight" rating to a "sector weight" rating in a report on Friday, May 22nd. Fifteen research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $109.33.

Zoom Communications Company Profile

Zoom Video Communications, Inc (commonly referred to as Zoom) is a provider of cloud-based communications and collaboration solutions. The company's platform supports video conferencing, voice calling, instant messaging, webinars and large-scale virtual events, and meeting room systems, marketed to businesses, educational institutions, government organizations and individual users. Zoom's product lineup includes Zoom Meetings, Zoom Phone, Zoom Rooms, Zoom Video Webinars and Zoom Chat, and the company offers integrations and extensions through a developer marketplace and third-party apps.

Founded in 2011 by Eric S.

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